The Prime Minister Narendra Modi said India is one of the most investment friendly countries in the world with political stability and supportive regulatory framework, while addressing the annual meeting of the Asian Infrastructure Investment Bank (AIIB) in Mumbai.
The third annual meeting of the Beijing-based AIIB began in Mumbai on Monday. The two-day event will focus will be made on infrastructure under the theme of “innovation and collaboration”.
Key Takeaways from the PM addresses
- In less than 3 years AIIB has a committed capital of $100 billion and will play a critical role in the Asia
- Sectors such as energy power, transportation, telecom, rural infra, water and sanitation require long term funds. The interest rates need to be affordable and sustainable
- Request AIIB to expand investment from the current $4 billion to $40 billion in 2022 to $100 billion 2025.
- This can be achieved with simple process and faster approvals
- India and AIIB are committed to making economic growth more inclusive and sustainable. India is applying novel Public Private Partnership models, Infrastructure Debt Funds, and Infrastructure Investment Trusts to fund infrastructure
- India is also trying to develop brownfield as a separate asset class. For these derisked assets pension and sovereign wealth funds are likely to more forthcoming
- In addition we have a National Investment Infrastructure Fund. It has received a boost with AIIB’s $200 million commitment
- India is the third largest country in terms of PPP and seventh largest in GDP. Macro economic fundamentals are strong and fiscal situation is firmly in country
- He shared India’s progress in social and health sector, economic development and elaborated on the agricultural reforms
- Earlier, Economic Affairs Secretary Subhash Chandra Garg said in a statement that India is the largest borrower from AIIB – Asian Infrastructure Investment Bank – with its projects getting financed to the extent of $4.4 billion in the last three years.